The Director-General of the Securities and Exchange Commission (SEC) Dr. Emomotimi Agama, has warned that the rising cases of fraud involving digital and virtual assets is undermining investor confidence and threatening the integrity of Nigeria’s capital market.
Dr. Agama said at the event to mark African Union Anti-Corruption Day, themed ‘Understanding Virtual Assets and Investment Fraud in Abuja that corruption remained a major barrier to economic development across Africa and that the emergence of fraudulent schemes in the digital space was compounding the problem.
“Today, as digital innovation transforms financial systems, we face new challenges, particularly the rise of virtual asset fraud and sophisticated investment scams exploiting unsuspecting investors. These threats undermine market integrity, erode trust, and divert resources meant for sustainable development,” he said.
He said that the Commission was taking decisive steps to strengthen investor protection through regulatory reforms and public education.
According to him, the recently passed Investment and Securities Act of 2025 contains key provisions to regulate virtual assets such as cryptocurrencies, digital tokens, and other blockchain-based assets.
“The SEC, as a frontline regulator, remains committed to strengthening investor education on recognising and avoiding fraudulent schemes, enhancing regulatory frameworks to keep pace with evolving risks in virtual assets and digital investments, and fostering cross-border collaboration to combat corruption and illicit financial flows,” he said.
He added that all Virtual Asset Service Providers, including exchanges, custodians, and brokers, are now required to obtain SEC approval and meet strict capital, governance, and cybersecurity standards. He also emphasised the need for full risk disclosures to investors.
“All platforms must warn investors about volatility, fraud, and regulatory risks. There are stiff penalties under the law for market manipulation, insider trading, and Ponzi schemes,” he added.
GIK/APA